A zero coupon bond with a 2-year maturity a two-year


Which has a long Macaulay’s duration: a zero coupon bond with a 2-year maturity, or a two-year maturity coupon bond that pays 6% coupon interest if they both carry a 6% market yield? Explain your reasoning.

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Financial Management: A zero coupon bond with a 2-year maturity a two-year
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